Under what conditions does Mr. Sandless have the right to condition consent to a transfer of the business?

According to the 2025 Mr. Sandless Franchise Disclosure Document, Mr. Sandless has broad discretion to condition its consent to any transfer of the franchise. Specifically, Mr. Sandless may withhold or condition its consent to a transfer as it deems appropriate based on the circumstances of the transfer or otherwise.

In addition to this general right, Mr. Sandless outlines several specific conditions that must be met for a transfer to be approved. These include the execution of a general release of claims against Mr. Sandless, the buyer's execution of the then-current Single Unit Franchise Agreement and a personal guaranty, payment of a transfer fee of $5,000 per owner for a Mr. Sandless Business, and satisfaction of Mr. Sandless's requirements for corporations or limited liability companies if the buyer is such an entity. Mr. Sandless must also approve all shareholders of a corporation transferee or all members and managers of a limited liability company transferee and may require that a particular individual remain the owner of at least 51% of the company.

Further conditions include the buyer obtaining all required permits and licenses, compliance with laws governing franchise transfers, and ensuring the purchase price and terms are not overly burdensome to the buyer's future operations. Mr. Sandless also requires the franchisee to request that Mr. Sandless provide the prospective buyer with the current form of disclosure document. Mr. Sandless approval of the transfer does not constitute a waiver of any claims Mr. Sandless may have against the franchisee, and Mr. Sandless has the right to disclose the franchisee's revenue reports and other financial information to any prospective buyer.

These conditions and rights provide Mr. Sandless with significant control over who becomes a franchisee and ensure that any transfer aligns with their standards and legal requirements. A prospective franchisee should carefully consider these conditions and understand the potential implications when planning for a future sale of their Mr. Sandless franchise.